Stay Away From NY Bank Stocks

Posted Aug 24, 2013 by Martin Armstrong

Moodys has implied that they may downgrade the big banks stocks including Goldman Sachs and J.P. Morgan. The reason for this is what I have been reporting that the Fed has informed the bankers they will not be bailing them out for proprietary trading. In addition, the bank spread between what they have been paying for money and what they charge is at historic highs. You cannot pay 0.5% for 3 years and get 4%. They have screwed the economy and lined their pockets. But this is coming back to bite them in the ass. They cannot be profitable with QE ending. They forgot how to make money the old fashion way – lending. They have counted on trading profits and dirt cheap money and that game is over. The big bank stocks have seen their best days.